Your labor variance might be telling you something important. 📊
A client was seeing significant labor variances. At first glance, it looked like a costing issue. But the real problem was operational. Workers were regularly working overtime, and the standard costs did not account for it. That meant the variance was not just a number in a report. It was a signal. The business was using one set of assumptions to price, plan, and measure performance, while the floor was operating under a different reality. That is where finance can add real value. Not by asking, “Why is labor over budget?” But by asking: “What changed in how the work is actually getting done?” Sometimes variance is not the problem, It is the clue. 🔍 What are your numbers trying to tell you before they become a bigger issue? \ redacted